HOLIDAY LETS:A new website is reviving the old-style Bed and Breakfast, and renting your home - or a room - can be lucrative, writes FIONA REDDAN
IF THERE is one asset that Irish people have an abundance of, it’s property. But if there’s one asset that is over-valued and hard to liquidate – it’s also property. So what to do? Well, for some canny people looking to put their properties to work and generate some cash, airbnb.com has become a lifeline.
The website, which was established in 2007, helps property owners to rent out either their properties, or rooms, on a short-term basis, by setting themselves up as part-time B&B owners.
While some traditional B&Bs have tried to become more anonymous to compete with hotels, airbnb has moved into the gap. It aims to offer guests the opportunity to “build real connections with their hosts, gain access to distinctive spaces, and immerse themselves in the culture of their destinations”.
At present, there are some 60,000 worldwide “hosts” on the website, with about 300 in Ireland. And you don’t always have to have bricks and mortar to rent out to get involved. On the Beara Peninsula in west Cork for example, one entrepreneurial home owner is renting out their garden which has spectacular views – you can pitch your tent there from $28 (€20) a night. Or in Kilfenora, Co Clare, you can rent a three-bedroom mobile home on an organic farm for $28 (€20.61) a night.
There are many benefits to working with a website if you want to take in guests – you only pay 3 per cent in a booking fee, all your payments are organised through the website, and you can communicate with potential tenants through the website rather than giving away your personal details.
Most importantly perhaps, your property is covered for loss or damage due to theft or vandalism caused by an airbnb guest, by up to $50,000. This was only introduced in August of this year, following some much-publicised incidents whereby landlords’ properties were destroyed.
The website has also brought in additional measures to improve security for both hosts and tenants, such as an address verification service.
Some people, mired in negative equity with over-sized mortgages, are seizing the opportunity to move back home with their parents or a welcoming friend, to make a bit of extra cash. Others are using the site to maximise rental income from holiday homes or investment properties, while others still are willing to recreate a real B&B atmosphere by welcoming strangers into their home.
And the money can add up. If you rent out your property for just four nights a month at €50 a night, that’s €200 a month, or €2,400 a year (minus airbnb’s €72 fee – the website also takes a cut from people booking rooms through the site). If you’re away on holiday for two weeks during the summer, you could boost your income substantially.
But before you put up that online B&B sign, there are some other factors to take into consideration. The first is to assess your property’s attractiveness. If you have a city centre property, or are based in one of Ireland’s tourist hot spots, then you might reasonably expect to attract some tenants. If, however, you are in a three-bedroom semi-detached in the suburbs then you are less likely to be busy.
Also, if you are willing to rent a room in your house while you stay there too, you have to consider how happy you will be sharing your space with strangers.
There are also some financial considerations. While you can earn €10,000 a year tax-free under the rent a room scheme, according to the Revenue Commissioners this does not apply to lettings on a temporary basis as the property is being used as guest accommodation rather than for residential purposes.
Moreover, if you are renting your property, sub-letting on this basis might violate the terms of your lease, while there may also be considerations when it comes to home insurance and the terms of your mortgage, if you have one.
From a home to a holiday let
WHEN MARCUS Casey and artist Marie-Louise Martin renovated Marie-Louise’s studio in Ballsbridge last year, the plan was to rent it out long term. But market conditions said otherwise.
Yet rather than give up on the plan, the couple looked to turn the property into a location for city-breaks, listing it on airbnb.com. The response, according to Casey, has been “remarkable”.
“Its been phenomenally busy. It turned from being a noose around our necks into my income. It’s been a life-saver,” he says.
The house is typically rented out twice a month, for about a week at a time. While there is work involved, including following up on expressions of interest and managing turnovers, by renting the two-bedroom property out for $138 (€99) a night, it has turned into a profitable venture.
While airbnb may have provided a steady stream of visitors – largely English-speaking but from all age groups – it has also assisted in helping the couple with their online profile.
As part of the deal, a photographer came to their property to take pictures to help promote it, while payments are all handled through the website.
To date, the couple have only had positive experiences, but are aware it can go either way – on a recent visit to Venice, for example, they used the website to find their own holiday accommodation but it didn’t work out.
“You take a risk,” Casey says.
Because of this, the couple take a deposit from guests, which is also managed by airbnb.
- Fiona Reddan
